MRPL shuts refining units as West Asia crude supply disruption hits operations: Report

State-run Mangalore Refinery and Petrochemicals Ltd (MRPL) has shut down key refining units at its Mangaluru refinery after crude oil supply disruptions linked to the escalating conflict in West Asia, according to a Reuters report citing industry sources.

The refinery, which has a total capacity of about 300,000 barrels per day (bpd), reportedly shut a 100,000-bpd crude distillation unit along with several secondary processing units, including a hydrocracker, from Wednesday evening due to an emerging shortage of crude oil supplies.

The disruption comes as tensions in the Middle East intensify following military confrontation involving Iran, the United States and Israel, which has significantly impacted shipping activity through the Strait of Hormuz, one of the world’s most critical oil transit routes.

Industry sources indicated that the shutdown also coincides with maintenance work at the refinery. “There is some maintenance going on as this is the opportune time considering supply optimisation is being done. The units will soon come online,” a source familiar with the matter said.

However, the broader supply challenges remain severe. Iran’s threats to commercial shipping in the Strait of Hormuz have disrupted crude flows across the region, making it difficult for refiners in Asia to secure prompt replacement cargoes.

The Strait of Hormuz handles nearly 20 per cent of global oil transportation, making it a vital chokepoint for international energy markets. The recent disruptions have already started affecting refinery operations across Asia, with some Chinese refiners reportedly reducing processing rates due to supply uncertainty.

MRPL’s situation has been further complicated by its crude sourcing strategy. The company had stopped importing Russian crude late last year, making it increasingly dependent on supplies from the Middle East.

Earlier, during a post-earnings conference call for its third-quarter results, Devendra Kumar, Director (Finance) of MRPL, had confirmed that the company was no longer importing crude oil from Russia.

Operational data also reflects the strain on refinery throughput. MRPL processed 12.65 million tonnes of crude oil during April–December 2025, compared with 13.54 million tonnes during the same period in 2024–25, indicating a decline in refining volumes.

In response to the supply disruptions and operational constraints, MRPL has already suspended exports of refined fuel cargoes and declared force majeure on certain export commitments.

The company has also halted gasoline export shipments, signalling the extent to which the ongoing geopolitical conflict has begun to impact downstream operations.

While MRPL has not yet issued an official public statement on the unit shutdown, the situation underscores the vulnerability of Asian refiners to supply shocks when geopolitical tensions disrupt critical maritime trade routes.

With uncertainty continuing in the Middle East and tanker movements through the Strait of Hormuz sharply declining, refiners across the region are expected to face continued pressure in securing crude supplies in the near term.